304538595.xlsx

Science Technology, Inc.Growth Rate Sales 12.0%COGSR&D ExpensesG&A ExpensesTax Rate 40.0%Accounts Rec.InventoryAccounts PayableAccrualsSales 1984 227 258.78 284.7488 318.9187 357.1889Interest Rate 8.2% 8.2% 8.2% 8.2% 8.2%Begin Notes Payable 14 16.10712 24.21961 35.13464 47.10729Begin LTD 25 25 25 25 25Begin Equity 164 164 164 164 164Debt as %of Cap 15%

Science Technology CompanyFinancial Projection, 1985 - 1989 (in millions)INCOME STATEMENT

1985 1986 1987 1988 1989 Science Technology CompanyNet Sales 254.24 100% 284.7488 318.91866 357.18889 400.05156 FINANCIAL RATIOS Sales growth is 12% per year in last few years however industry has grown at 30%COGS 114.408 45% 128.13696 45.00% 143.5134 45.00% 160.735 45.00% 180.0232 So the firms predicted growth remains the same considering market scenario Gross Profit 139.832 55% 156.61184 55.00% 175.40526 55.00% 196.45389 55.00% 220.02836 45% of sales (recent) 1985 1986 1987 1988 1989General & Admin. Exp. LIQUIDITY MEASURES R&D Expense 40.6784 16.00% 45.559808 16.00% 51.026985 16.00% 57.150223 16.00% 64.00825 16% sales (last and changing market) Current Ratio Other G&A Exp. 78.8144 31.00% 88.272128 31.00% 98.864783 31.00% 110.72856 31.00% 124.01598 Quick Ratio Total G&A 119.4928 47.00% 133.83194 47.00% 149.89177 47.00% 167.87878 47.00% 188.02423 31% of sales Working Capital TurnoverNet from Operations 20.3392 8.00% 22.779904 8.00% 25.513492 8.00% 28.575112 8.00% 32.004125

Interest Expense 1.23439172 0.49% 1.6533957 0.58% 2.4335241 0.76% 3.371919 0.94% 4.4488219 ACTIVITY MEASURESNet Inc. Before Taxes 19.1048083 7.51% 21.126508 7.42% 23.079968 7.24% 25.203193 7.06% 27.555303 Age of Trade Rec.Taxes 7.64192331 3.01% 8.4506033 2.97% 9.2319873 2.89% 10.081277 2.82% 11.022121 Age of PayablesNet Income 11.462885 4.51% 12.675905 4.45% 13.847981 4.34% 15.121916 4.23% 16.533182 Inventory Turnover

Asset TurnoverBALANCE SHEET

1985 1986 1987 1988 1989 COVERAGE MEASURESCash 1.77968 1.9932416 2.2324306 2.5003223 2.8003609 Cash Flow/Int. ExpenseAccts. Receivable 68.6448 76.882176 86.108037 96.441002 108.01392 Debt to EquityInventory 94.95864 106.35368 119.11612 133.41005 149.41926

Other 6.86448 7.6882176 8.6108037 9.6441002 10.801392 PROFITABILITY RATIOS Current Assets 172.2476 192.91731 216.06739 241.99548 271.03493 ROA after TaxesNet Fixed Assets 68.6448 76.882176 86.108037 96.441002 108.01392 ROE after TaxesOther 8 8 8 8 8

Total Assets 248.8924 277.79949 310.17543 346.43648 387.04886

Notes Payable 16.107115 24.21961 35.134637 47.10729 61.400026

Accounts Payable 14.87304 13% 16.657805 18.656741 20.89555 23.403016

Accruals 19.44936 17% 21.783283 24.397277 27.32495 30.603944

Current Liabilities 50.429515

Long-Term Debt 21 25 28 32 36

Other LTO 2 fix 2 2 2 2

Net Worth 175.462885 188.13879 201.98677 217.10869 233.64187

Total Liab. & Equity 248.8924 277.79949 310.17543 346.43648 387.04886

80 81 82 83 84 85

Net Income 10 -3 7 16 10 14.979

Networth 68 65 91 154 164

Share Sold 18.975 46.8

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Beginning Net Worth 700 164interest rate 0.08 0.084Beginning Notes Payable 50 14

1985Net Sales 1000 258.78

COGS 800 116.451

Gross Profit 200 142.329

General & Admin. Exp. 100 116.451

Net from Operations 100 25.878

Interest Expense 7.786885 -0.040619

Net Inc. Before Taxes 92.21311 25.91862

Taxes 36.88525 10.36745

Net Income 55.32787 15.55117

BALANCE SHEET1985

Current Assets 100 175.3235

Fixed Assets 900 77.8706

Total Assets 1000 253.1941

Notes Payable -plug 144.6721 -14.96712

Long-Term Debt 100 88.61

Net Worth 755.3279 179.5512

Total Liab. & Equity 1000 253.1941